If you are looking towards opening a Bahama Buck’s Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Bahama Buck’s Franchise Corp. was founded in 1989 and they began franchising in 1993, about 27 years ago. The current CEO is Blake Buchanan and they have their corporate head office at 5741 50th St. Lubbock, TX 79424, USA. As of 2018, the company operates 109 franchises in the United States.
Bahama Buck’s Franchise Corp. is a shaved ice and frozen drink store chain specializing in non-alcoholic frozen beverages. The company was founded in 1990 and is based in Lubbock, Texas. In addition to shaved ice available in 91 proprietary flavors, the Bahama Buck’s menu offers smoothies, sodas, lemonades and limeades, fruit and coffee drinks.
Bahama Buck’s Original Shaved Ice is a privately held snow cone franchise. With a tropical theme, franchises boast of a business environment without the typical stiff corporate feel. The top earning Bahama Buck’s Original Shaved Ice franchises earn 36.59 percent net profit, which is triple what most frozen dessert businesses earn.
One important factor is the fairly simple product. Food and paper costs only amount to 23.7 percent of costs, which allows for a remarkable profit margin. When Buchanan opened Bahama Buck’s, he kept stores closed on Sundays to correspond with his strong Christian beliefs. However, most franchise locations now stay open on Sundays Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Bahama Buck’s Franchise
Initial Franchise Investment – $233,326 to $832,963
Please note that the investment figures to franchise a Bahama Buck’s differs depending on the location (kiosk, strip mall store, or a stand-alone large building.) The total estimated investment ranges from $163,442 for a kiosk and $463,884 for a large store. An additional 6 percent of gross sales goes toward royalties, while 2 percent goes toward advertising efforts. The average income of a Bahama Buck’s franchise is $245,306, with the top 25 percent of stores earning $357,611.
Franchise Fee – $29,500
6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Bahama Buck’s Franchise Corp. and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Bahama Buck’s Franchise Corp. if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Bahama Buck’s Franchise Corp. if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Bahama Buck’s Franchise Corp. is required to defend your unsuccessful claim against it.
- Veteran Incentives: can be negotiated with Bahama Buck’s Franchise Corp.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Bahama Buck’s Franchise Corp. offers in-house financing to cover the following: startup costs, equipment and also, Bahama Buck’s Franchise Corp. has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll.
- Initial Investment: $233,326 – $832,963
- Net-worth Requirement $350,000
- Liquid Cash Requirement $90,000
- Ongoing Initial Franchise Fee: $29,500
- Ongoing Royalty Fee: 6 percent
- Ad Royalty Fee: 2 percent